We have less than 2 weeks left before the end of the Expo 2020. It seems like we remain clueless about the market situation, once it will be over on March 31, 2022. Will Dubai’s economic growth double? What kind of boom Dubai property sector will experience after Expo 20202? Will Dubai real estate sector become more attractive and more accessible for global investors? Which sectors will flourish more and outperform Dubai real estate?
These are a few questions that popped up in everyone’s mind.
What not to be associated with Expo 2020?
A major misconception associated with Expo 2020 was that the event was designed to entice investors to visit Dubai and invest in Dubai properties. It will bring an incredible boom to the Dubai property sector, which will create a stir in the economic sector and Dubai (in particularly) reap benefits not just during the event but several months after it.
Expo 2020 Dubai was a mega global event because it is the first such event to be held since the onset of the COVID-19 induced global pandemic. With more than 92 per cent of the total population of the UAE being vaccinated against the COVID-19 virus, the country quickly regained the confidence to host international tourists in the country.
Dubai is a melting pot of global culture and different nationalities. Expo 2020 was planned to present this country as a hub for innovation and forward-thinking and bridge the gap between different global cultures. Anyone from any part of the world is welcomed in Dubai and he/she can enjoy a safe lifestyle like nowhere else. Expo has given a chance to Dubai to create a positive impact on the world.
People enjoyed visiting Expo 2020 and Dubai, which enticed others to follow them. The visit numbers crossed the 10 million mark. In short, Expo 2020 boosted Dubai’s economy but it was not the only event that impacted positively on it.
Supply – Demand – Prices
According to general speculation, Expo 2020 was the driving factor to increase the demand for Dubai properties. However, several real estate experts do not agree with it and state that there was no significant increase in the demand or price of properties in Dubai. Therefore, there will be no dramatic drop in the demand and price of Dubai properties. Prices for Dubai properties may remain higher and follow a steady upward trend after Expo 2020.
Oversupply of Dubai properties can be slightly problematic and may keep prices in check. Around 40,000 residential units are planned to come to the market in 2022, due to which property prices cannot be increased exponentially.
Demand for villas, townhouses and high-end properties in Dubai will continue on the same patter it was in 2021. Dubai villa prices were increased by 20 per cent in 2021. Dubai property prices are expected to grow (following a consistent pattern) by almost 5% to 6% on annual basis.
Expo 2020 will be converted into District 2020
Expo 2020’s site will not be left unused but the site will be converted into District 2020 – a sustainable and environment-friendly mixed-use community. The majority of the residential and commercial spaces will be kept, and nearly all of the infrastructure will be reused. Most of the real estate experts have appreciated the idea because it will generate interest from buyers and investors – looking forward to the future vision of Expo 2020.
Not just the residential sector will be benefited from this transition but District 2020 is expected to become a new commercial hub in the emirate as Dubai World Trade Centre activities are likely to be shifted to the Expo 2020 Convention and Exhibition Centre.
Commercial sector’s expansion
The residential communities located near Expo 2020 site will also be positively impacted by District 2020. And when it comes to commercial developments, new shopping centres, hotels and more than 400 restaurants are developed in and around Expo 2020 site, which will continue to function after the global event. The rapid increase in commercial properties will open the doors to hundreds of new businesses and investors into the city.
Dubai real estate has a bright future
With such a large number of tourists visiting Dubai nowadays due to the Expo 2020, it is expected that there will be a huge influx of potential investors in the residential sector of Dubai. Moreover, the government has taken countless measures to make this sector attractive for potential investors including the introduction of a golden visa to the investors. Dubai has also won the status of one of the safest cities in the world to live, which will not just bring more investment into the city but also makes it an attractive place to live.
According to a rough estimate, almost 5 per cent to 6 per cent of total international visitors to Expo 2020 are expected to invest in Dubai real estate and at some point of time, they will return to live in Dubai.
After knowing all these advantages of Expo 2020, it can be said that the event is just the beginning of a new era in Dubai. It will bring international investment in the residential and commercial real estate sector into the country, which will allow UAE to diversify its economy and be a place to live, work and enjoy.
If you are interested to buy a property in Dubai in any particular area, you can text or call team HFRE at +971 4876 2473 or write us an email at firstname.lastname@example.org and our sales representative will get back to you with the best available options that can also fit into your budget.